Astra Microwave Products Limited has received in-principle board approval for a comprehensive demerger of its space, meteorology, and hydrology business undertakings into a separate listed entity. The board meeting held on February 27, 2026, formally approved the strategic separation plan under Regulation 30 of SEBI regulations, with the company targeting completion by Q1 of FY28.

Demerger Structure and New Entity Formation

The proposed restructuring will create two independent listed companies with distinct operational focus. Astra Microwave Products Limited will continue as a pure-play Defence and Aerospace company, while the new entity Astra Space Technologies Private Limited (ASTPL) will house the Space, Meteorology and Hydrology businesses as an independently listed entity on BSE and NSE.

Strategic Rationale and Value Creation

The demerger aims to unlock shareholder value through enhanced strategic focus across business verticals. The company expects the transaction to be value accretive over the medium to long term by enabling clearer capital allocation strategies and improved operational efficiencies. The separation will allow management teams to pursue sector-specific growth strategies while improving oversight, governance, and accountability.

The Space and Weather business represents a scaled-up, profitable, high-growth opportunity driven by expanding demand for satellite design and assembly, as well as satellite data applications in both domestic and international markets. However, the business is capital-intensive and execution-dependent, requiring focused management attention to realise its significant growth prospects.

Business Heritage and Market Position

Astra's space business has executed orders worth over ₹750.00 crore cumulatively for ISRO over two decades, with an additional ₹250.00 crore in orders to be executed by FY28. The company has participated in major programs including GSAT, RISAT, CARTOSAT, GI SAT, IRNSS, and NISAR satellites since ISRO opened private sector participation in 2001.

In the Meteorology and Hydrology segment, Astra has supplied Automatic Weather Stations, Agro-meteorological stations, various meteorological sensors, Doppler Weather Radars, Wind Profiler Radars and Avalanche Radars for government missions. The company has also established presence in international markets, supplying AWS systems to Nepal, Bangladesh and Bhutan.

Implementation Framework and Approvals

The board has authorized management to consult with subject experts for consideration by the Audit Committee and Board. The Audit Committee will appoint a Registered Valuer to determine the share exchange ratio for the proposed demerger and finalize the structure, including identification of assets, liabilities, contracts, employees, and other matters forming part of the business undertakings.

The transaction will be implemented through a Scheme of Arrangement under applicable provisions of the Companies Act and SEBI regulations. The company has clarified that this represents an in-principle approval, with the final decision on the proposed demerger structure, share exchange ratio, and terms to be determined after receiving requisite reports and expert opinions.

During the transition period, there will be no interruption to business operations, and no impact is anticipated for employees, customers, or partners. The Space, Meteorology and Hydrology business will be transferred to ASTPL on a going-concern basis, ensuring operational continuity.

Source: None/Company/INE386C01029/71413f53-d9e8-4eff-b9bc-6f3a6a502c8c.pdf

Astra Microwave Products Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company demonstrated solid operational performance with margin expansion across both standalone and consolidated metrics while announcing a significant leadership transition in its finance function.

Standalone Financial Performance

The company's standalone operations showed robust performance during Q3FY26. Revenue from operations reached Rs. 258 crores for the quarter, representing a marginal growth of 0.6% year-on-year. EBITDA stood at Rs. 80 crores with an improved margin of 30.9% compared to 29.1% in the previous year. Net profit was Rs. 39 crores, maintaining a healthy PAT margin of 15.1%.

For the nine-month period, the company achieved revenue of Rs. 668 crores with strong growth of 4.5% year-on-year. The geographical revenue mix showed India contributing 88.1% and exports accounting for 11.9% during the nine-month period.

Consolidated Results and Order Book

On a consolidated basis, the company's performance included contributions from subsidiaries and joint ventures. Consolidated revenue from operations for Q3FY26 was Rs. 260 crores with year-on-year growth of 0.7%. EBITDA margin improved to 31.7% from 29.5% in the previous year, while PAT stood at Rs. 47 crores.

The company maintains a strong standalone order book of Rs. 2,226 crores as of December 31, 2025, while the consolidated order book stands at Rs. 2,566 crores. During the quarter, the company secured new orders worth Rs. 476 crores.

Management Commentary and Strategic Outlook

During the earnings conference call held on February 13, 2026, Managing Director S.G. Reddy highlighted the company's strongest-ever nine-month performance across profitability metrics. He emphasized the margin expansion driven by favorable revenue mix and disciplined execution. The management reaffirmed growth targets for FY26, comprising approximately 10% growth in topline with order inflows expected in the range of Rs. 1,300 crore to Rs. 1,400 crore.

Joint Managing Director Dr. M.V. Reddy noted that the company has concluded price negotiations for contracts worth approximately Rs. 550 crores to Rs. 600 crores, which are likely to convert into firm orders by end of the quarter. The management expressed confidence in achieving long-term targets, with expectations of more than doubling turnover in the next 3-4 years.

Order Book Composition and Strategic Wins

The diversified order book composition includes Defence/Public sector at 89%, Space at 11%, along with Meteorological projects and Exports. During Q3, the company secured strategically significant wins including Doppler weather radar, software defined radios, and EW suites for Su-30 platform.

The company's joint venture Astra Rafael Comsys performed exceptionally well, executing $18.19 million in Q3 with an order book of $80 million. The JV is expected to achieve revenues of Rs. 350-plus crores for the current year and Rs. 400-plus crores for the next year, with PBT margins of 10% to 12%.

Leadership Transition

The Board of Directors meeting held on February 12, 2026, approved significant changes in senior management. Mr. Rahul Rungta ceased to be the Chief Financial Officer with effect from February 11, 2026, and has been appointed as CFO at Astra Space Technologies Private Limited, a wholly owned subsidiary.

Mr. Srinivasarao Devathi, a Chartered Accountant with over 22 years of experience in Finance & Accounts operations, has been appointed as the new Chief Financial Officer and Key Managerial Personnel with effect from February 12, 2026.